Russia signs $16.5 billion deal to build first nuclear power plant in Kazakhstan
Russia signs $16.5 billion deal to build first nuclear power plant in Kazakhstan
By Tamara Vaal, Mariya Gordeyeva and Anastasia LyrchikovaThu, May 28, 2026 at 10:54 AM UTC
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1 / 0Russia's President Vladimir Putin meets with Kazakhstan's President Kassym-Jomart Tokayev in AstanaRussia's President Vladimir Putin and Kazakhstan's President Kassym-Jomart Tokayev attend a welcoming ceremony before a meeting in Astana, Kazakhstan May 28, 2026. REUTERS/Turar Kazangapov
By Tamara Vaal, Mariya Gordeyeva and Anastasia Lyrchikova
ASTANA, May 28 (Reuters) - Russia signed an agreement on Thursday with Kazakhstan to build the first nuclear power plant in Central Asia's largest country at a cost of about $16.5 billion, partially covered by a major export loan from Moscow.
Kazakhstan, the world's biggest producer of uranium and a country which suffered from the fallout from Soviet nuclear testing, has been discussing the possibility of atomic power for at least two decades.
A 2024 referendum returned a vote in favour of constructing a nuclear power plant and designated the village of Ulken, on the shores of Lake Balkhash in the southeast of the country as the site.
"The agreement signed today on the construction of the Balkhash NPP has an important role," Kassym-Jomart Tokayev, Kazakhstan's president, said before thanking Russian President Vladimir Putin, who was in Astana for talks, for his support.
"Putting the plant into operation will make a significant contribution to the energy supply of the Kazakh economy," Putin said.
The two sides also signed an agreement on the provision of Russian export credit to finance construction of the plant.
KAZAKHSTAN'S NUCLEAR PATH
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Russia's state nuclear corporation Rosatom won the lead role in building the plant, edging out China National Nuclear Corporation (CNNC), French utility EDF and Korea Hydro & Nuclear Power, according to Kazakhstan's atomic energy agency.
The head of Kazakhstan's atomic energy agency, Almasadam Satkaliyev, told reporters that the cost of the plant - with two VVER-1200 III+ reactors - would be about $16.5 billion, including about $2 billion for security and infrastructure.
Construction will begin in 2027 and the first reactor will be commissioned in early 2034, according to Satkaliyev.
Kazakhstan was the site of hundreds of Soviet nuclear weapon tests which have made large swathes of land uninhabitable, caused numerous diseases among people in nearby areas, and have left many people distrustful of anything nuclear.
But the country needs energy. Despite having sizeable natural gas reserves, the Central Asian nation of 20 million relies mostly on coal-powered plants for its electric power needs, supplemented by some hydroelectric plants and the growing renewable energy sector.
Kazakhstan is already importing electric power, mostly from Russia, as its own generating facilities, many of which are aged, struggle to meet domestic demand.
It has approved construction of a second nuclear plant, with state-run CNNC selected as the main constructor.
(Reporting by Tamara Vaal in Astana, Mariya Gordeeva in Almaty and Anastasia Lyrchikova in Moscow; Writing by Guy FaulconbridgeEditing by Andrew Osborn and Kirsten Donovan)
Source: “AOL Money”
